On 16 September 2026, the European Parliament has voted to adopt the new Union Customs Code (“nUCC“) heralding broad customs reform for the European Union (“EU“). Changes will be spread across all facets of customs compliance and there are expected to be accelerated timelines for implementation that are likely to impact all businesses importing into the EU.
There are two key drivers to reform customs processes and requirements across the EU (i) the desire to increase the responsibilities of traders; and (ii) a corresponding expansion of benefits that can be provided to reliable and trusted operators conducting customs formalities. As part of satisfying this, traders that will be expected to provide the EU authorities with greater access to their supply chains and customs related data with the introduction of the EU Customs Data Hub (“CDH”) (which will provide the authorities with continuous access and lead to a data-driven approach to customs compliance). Traders willing to provide more in depth access of their compliance processes will also benefit from a broader range of customs simplifications and facilitations. This is expected over time to change the customs landscape in the EU by introducing a tiered compliance process. The more transparent or “trusted” a trader is considered, the more they will benefit from a shift towards a less transaction-based customs compliance regime. For businesses with strong trade compliance governance and a clear understanding of their supply chains, compliance will increasingly become a strategic lever. Whereas traders that do not meet these standards will continue to be subject to both traditional customs controls and higher level of scrutiny.
As part of introducing these changes, importers will become responsible not only for customs duties, but also non-customs regulatory requirements including product regulatory compliance. Tying to this, the nUCC will remove the concept of “declarant” and introduce the broader “importer” concept, with all obligations sitting with this identified entity. For any non-EU established importers, the responsibilities, including those detailed below, will sit with the indirect customs representative.
EU Customs Data Hub: from customs clearance to EU-wide risk management
- With a view to centralise data submitted by different actors across different supply chains and provide the EU customs authorities with continuous and consistent oversight of goods from their entry into the EU until their release to free circulation (or entry into a special procedure), the EU CDH will apply for all traders.
- It will first becoming available for all operators from 1 March 2031 and mandatory from 1 March 2034 onwards and lead to national customs clearance systems being decommissioned.
- The transition to the EU CDH will see the removal of customs declarations and datasets, as well as the replacement of the Entry Notification System (ENS) with Advanced Cargo Information and introduction of relevant supply chain actors (e.g., importers, exporters, buyers and manufacturers).
- The management of special procedures will increasingly rely on centralised data and supervision, enabling customs authorities to oversee cross-border operations from a supply-chain perspective rather than through isolated customs transaction. Special procedures will progressively move away from a model based on local customs offices and individual declarations towards one based on centralised data, risk analysis and supervision by the customs authority of the trader’s Member State of establishment.
- The objective is to reduce reliance on transaction-by-transaction customs management, with greater emphasis on the supervision of operators and supply chains, and increase use of centralised data and supervision through the EU CDH, reducing the fragmentation currently resulting from multiple national systems and authorities.
- Beyond the simplification of customs formalities, this reflects a broader shift towards end-to-end supply chain visibility. Traders should expect requests for more granular information on supply chain actors and transactions, enabling customs authorities to obtain a more complete picture of goods movements and economic relationships. This enhanced transparency is expected to support not only customs enforcement but also the implementation of non-customs regulatory frameworks such as CBAM, the EUDR and the Forced Labour Regulation.
- More fundamentally, the EU CDH has the potential to transform risk management at EU level. By consolidating data across supply chains and Member States, it will allow authorities to move beyond the analysis of individual import transactions and develop a more holistic and consistent approach to risk assessment. This capability is likely to play an increasingly important role not only for customs controls but also for market surveillance and the enforcement of a growing range of EU regulatory requirements.
- In this context, the EU Customs Authority (EUCA) is expected to become a central actor in defining and coordinating risk management policies across the EU, contributing to a more coherent and harmonised approach to controls among Member States.
- Until 28 February 2028 traders using simplified declarations, centralised clearance and EIDR will be able to continue using these processes. After this date, traders will need to use the EU CHD to benefit from equivalent import facilitation processes.
- Both the EU Commission and European Anti-Fraud Office (OLAF) will be granted direct access to the EU CHD. Whereas, the European Public Prosecutors Office (EPPO), Europol and Frontex, as well as national customs authorities, will be required to request access in accordance with their mandates and will be subject to specific restrictions and criteria.
Authorised Economic Operators (“AEO”) & Trust and Check (“T&C”) Traders: more responsibility, more facilitation
- The objective of these new statuses is to encourage traders to place international trade at the centre of their governance and compliance frameworks. In line with the broader reform, traders that can provide greater transparency, stronger controls and reliable data will benefit from a wider range of facilitations and a closer relationship with customs authorities.
- Contrary to previous expectation, the Council has decided to retain AEO status meaning that traders that can demonstrate a high degree of customs compliance but do not meet the T&C Trader standards will still be able to benefit from certain facilitations.
- Through AEO and T&C Trader status, The nUCC codifies the principle that trusted traders should receive more favourable treatment than standard operators, particularly in relation to customs controls.
- In order to obtain AEO or T&C Trader status, the applicant will need to demonstrate a high level of control over their operations and maintenance of any licences required outside of customs legislation.
- T&C Trader status takes this a step further, with applicants required to have carried out customs operations for at least the last two years, grant access to customs data submitted throughout the last three years and demonstrate sufficient knowledge and familiarity with the EU CDH.
- T&C Traders will operate under a significantly higher level of transparency. Customs authorities will conduct audits at least every two years, traders will be required to notify material changes to their corporate structure, ownership, solvency situation or trading models, and customs will have ongoing access to the data made available through the EU CDH.
- While the eligibility criteria are demanding, the benefits are substantial and include the ability to release goods without awaiting active customs intervention, the performance of certain controls at the trader’s premises, the submission of part of the customs data after release, periodic determination and deferred payment of customs debt, as well as a range of additional simplifications for temporary storage and special procedures.
Customs valuation
- Importers operating with a simplified customs valuation methodology or that are required to make retrospective valuation adjustments will continue to be able to operate these practices with comparable provisions being introduced.
- Binding Valuation Information rulings will also be introduced 12 months after the entry into force of the legislation, providing importers with certainty of their customs valuation approach.
Customs decisions
- Customs decision holders (for example for binding valuation, origin and tariff, decisions customs warehousing and inward processing) will be required to both demonstrate satisfaction of the relevant eligibility criteria at the time of application, as well as ensuring ongoing compliance throughout the decision approval period. This will include by maintaining appropriate internal controls to self-monitor activities and processes.
- There is expected to be increased scrutiny by EU customs authorities on assessing how customs decisions are applied by the economic operators.
E-commerce
- The most notable development impacting e-commerce operators is that the final legislation makes reference only to an “importer for distance sales” rather than a “deemed importer”. As a result, unlike in other EU legislation including the Digital Services Act, no safe harbour provisions have been introduced to limit an e-commerce platform’s liability. This is despite prior confirmation from the EU Commission confirming the optionality of identifying the “importer for distance sales” as either the person facilitating the sale (e.g., an e-commerce marketplace or platform) or the person selling the goods (i.e., the underlying vendor).
- The nUCC also shifts the basis of establishing whether products are subject to duty exemptions from the “intrinsic value” (i.e., the price payable for the product minus freight, insurance and handling) to the customs value. This is likely to increase the value of goods and move them out of the interim €3 flat rate of duty regime (which is expected to be in place until 1 July 2028) to being captured by the standard customs duty regime.
- Beyond this, the position on e-commerce remains largely unchanged from the proposal, with key developments impacting e-commerce operators detailed in our previous blog (here).
Penalties
- The nuCC will introduce a common, EU-wide non-exhaustive list of administrative penalties. There are not currently minimum or maximum fines or financial penalties. However, further guidance on this is expected in the proposed Directive on customs infringements.
The nUCC is expected to enter into force on the day following its publication in the Official Journal of the European Union. While most of its provisions will become applicable 12 months later, certain measures, including key provisions relating to e-commerce and the concept of import distance sales (see our blog (here) which previously outlined the additional considerations for e-commerce operators) are expected to apply from 1 November 2026 and for the customs handling fee 10 days after the Commission adopts the nUCC Delegated Act. Several cornerstone elements of the reform, including the EU CDH, will however be phased in over a significantly longer period extending into the 2030s.
If you are importing goods into the EU reach out to a member of our team for support to ensure your business is ready to implement the new customs compliance requirements.
